Company Disclosure Information

LICENCE STATUS

Rix Insurance (FSP46061) holds a license issued by the Financial Markets Authority to provide financial advice.

CONTACT DETAILS

NATURE AND SCOPE OF ADVICE

Rix Insurance provides advice to our clients about their life insurance and health insurance.

We only provide financial advice about products from certain providers:

• For life insurance, we work with 6 companies – Asteron, AIA, Fidelity Life, Chubb Life, Partners Life and NIB.
• For health insurance, we work with three companies – AIA, NIB and Partners Life.

We do not provide advice on:

• General tax advice.
• Legal or Estate planning (e.g., wills, EPA’s, trusts, contracts etc).
• Investment products (e.g., shares, bonds, managed funds, KiwiSaver etc)
• Mortgage / lending advice.
• Fire and General Insurance (e.g., house, car, contents etc).

You will need to consult an appropriate specialist if you would like advice on the above or we can refer you to an adviser who specialises in these areas.

Any financial advice provided on our behalf will take account only of the information you have given us about your needs, financial situation, or goals.

FEES OR EXPENSES

For a Lifestyle Protection Insurance Plan:

Your first 2 insurance meetings with Rix Insurance are at no charge to you.

After this, should you decide not to act on my advice, I may charge you an hourly fee of $217.50 plus GST for the services performed. This will be based on the time taken to prepare my advice. The average charge for this Service Fee is $1,250. Calculated at 5 hours x $217.50 per hour plus GST. Please note that this Service Fee could be less of more depending on the hours spent preparing my advice.

Rix Insurance will invoice you for the Service Fee, payable by the 20th of the month after the invoice is issued.

Likewise, Rix Insurance may charge a Cancellation Fee.

If your insurance policy is cancelled within 24 months, Rix Insurance will have to repay some of the “upfront” commission received to the insurer. This is known as “commission claw back”. If the insurer charges Rix Insurance with a commission claw back, due to early cancellation of insurance arranged for you, Rix Insurance will ask you to repay to Rix Insurance the commission that it must repay to the insurer. This Cancellation Fee may vary depending on what work has been done for you regarding providing our advice, negotiation, and administration to complete and submit your insurance to the provider. Rix Insurance guarantee it will be no more than $5,000 regardless. The hourly rates used will be $217.50 per hour plus GST.

Rix Insurance will invoice you for the Cancellation Fee, payable by the 20th of the month after the invoice is issued.

You will not have to pay a Cancellation fee if:

Rix Insurance was given the opportunity but was unable to get a subsequent insurance policy approval or,

In Rix Insurance’s opinion, the early insurance cancellation was caused by an exceptional change of circumstances for you.

CONFLICTS OF INTEREST

Rix Insurance and the financial adviser can from time to time receive rewards from the insurance companies on whose policies we give advice for the overall business we provide to them. They may give us tickets to sports events, hampers, dinners, or other incentives.

To ensure that our financial advisers prioritise the client’s interests above their own, we follow an advice process that ensures our recommendations are made based on the client’s goals and circumstances.

Our financial advisers undergo annual training about how to manage conflicts of interest.

We undertake a compliance audit, and a review of our compliance program annually by a reputable compliance adviser.

COMMISSIONS AND INCENTIVES

For life insurance, health insurance and fire and general insurance, Rix Insurance and the financial adviser receive commissions from the insurance companies on whose policies we give advice and if you choose to take up my advice and a policy is put in force.

The amount of the commission is a percentage based on the amount of the premium being paid. The commissions vary between products and Insurance companies and can range anywhere from 0% through to 230% of the first year's policy premiums for Initial commissions.

I will also receive an ongoing service commission of anywhere between 3% to 30% of the policy premiums for each year the policy is in force.

Rix Insurance will sometimes receive a referral fee of between 15% - 35% for referring you onto other trusted business partners.

Koura Kiwisaver – I am able to refer you to Koura Kiwisaver provider: Rix Insurance will be paid commission of up to 0.3% of the fund value when you sign up with Koura, where you have been referred by me.

NZ Funds Kiwisaver – I am able to refer you to NZ Funds Kiwisaver provider: Rix Insurance will be paid an upfront commission of 1% of the amount invested into any NZ Funds Advised Portfolio Service or NZ Funds Managed Superannuation Service. Rix Insurance also receives an annual commission of up to 0.4% on amounts invested in the NZ Funds investment solutions.

COMPLAINTS HANDLING AND DISPUTE RESOLUTION

I strive in providing quality service to keep my clients happy, however, if you are dissatisfied in any way with my service, please let me know as soon as possible, so I can make it right.

I have a formal, internal complaints handling process, and aim to reach a resolution with you quickly and efficiently.

I will keep you informed through all stages of the process. Your complaint will also be kept confidential and confined only to the involved parties, except with your consent.

Step 1

If you are dissatisfied with any part of my service, please lodge your complaint by contacting me on corey@rixinsurance.co.nz. I will acknowledge receipt of your complaint within 2 working days and I will ensure your complaint is at the top of my priority list.

Step 2

I will try to resolve your complaint with you within 10 working days. This may mean I will contact you via phone or email to try to arrange a meeting. I will do my very best to solve the complaint with you internally. In some instances, I may need to ask you for further information or agree on an extension if the issue is complex, or there are problems outside my control.

Step 3

If I cannot resolve this complaint internally (the complaint is ‘deadlocked’ e.g., no agreement reached, or the complaint is not accepted), I am a member of Financial Services Complaints Limited (FSCL). FSCL is a free, independent dispute resolution scheme. You can contact FSCL if you are not satisfied with the outcome of my internal complaints process. My dispute resolution scheme must be contacted within three months of being informed of my decision.

Details of my dispute resolution scheme can be found on my disclosure document and listed below:

CONFIDENTIALITY AND USE OF PERSONAL INFORMATION DISCLOSURE (PRIVACY ACT 2020)

It is understood that any information gathered and used in any advice reports and for insurance applications is personal and I undertake to keep this information confidential and secure.

The Privacy Act 2020 gives you the right to request access to and correction of your personal information. If any of the personal information we hold about you is incorrect, please let us know so we can update our records.

Information provided by you or any authorised agent, will be used by me and any members of my staff for the purpose of providing advice to you, marketing of other services I provide and may also be used by any:

• Product or service provider when researching, analysing or implementing any of my recommendations or variations thereof; and
• The Financial Markets Authority and/or any other regulatory body as required for audit or legislative purposes, compliance advisers, assessors or by any claims investigators who may need access to such information; and
• Other professionals such as solicitors, accountants, financial planners when such services are required to complement this advice and as requested by you, or a
• Prospective purchaser if I intend to sell my business.

The information will be held by me in my office address detailed in this document and my website and may be in paper format and/or electronic files and / or may be held remotely in secure electronic storage systems such as my CRM - Trail.

I am required to keep these records on file for a period of seven years or longer whether or not this engagement terminates. After this period, I will securely destroy all your information.

OUR DUTIES

Rix Insurance, and anyone who gives financial advice on my behalf, have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.

We are required to:

• give priority to your interests by taking all reasonable steps to make sure our advice isn’t materially influenced by our own interests.
• exercise care, diligence, and skill in providing you with advice.
• meet standards of competence, knowledge and skill set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure that we have the expertise needed to provide you with advice).
• meet standards of ethical behaviour, conduct and client care set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure we treat you as we should and give you suitable advice).

This is only a summary of the duties that we have. More information is available by contacting us, or by visiting the Financial Markets Authority website at https://www.fma.govt.nz

The Code of Conduct standards can be read here: https://www.fma.govt.nz/assets/assets/code-of-professional-conduct-for-financial-advice-services.pdf